A Company Should Pursue Unrelated Diversification Instead of Related Diversification

question 14

Multiple Choice

A company should pursue unrelated diversification instead of related diversification when:

• A) its core skills are highly specialized and have few applications outside its core business.
• B) the company's top managers are skilled at acquiring and turning around poorly run enterprises.
• C) its core technological skills are applicable to a wide variety of industrial and commercial situations.
• D) it wants to maximize growth.
• E) the bureaucratic costs of implementation do not exceed the value that can be created by realizing economies of scope.

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Definitions:

Japan

A country in East Asia known for its rich culture, technological advancements, and historical significance.

Domestic Negotiations

Refers to the process of discussion and compromise that occurs within a country, typically involving personal or professional matters.

Across Cultures

A term referring to the comparison or interaction between different cultures or cultural practices, emphasizing diversity and multicultural understanding.

Principled Negotiation

A negotiation strategy focused on mutual interests rather than positions, aimed at finding a solution that is fair to all parties involved.